Stored crops to secure loans under Ghala Pesa

DODOMA: COOPERATIVE Bank Tanzania (CBT) has unveiled plans to introduce a new financing product, Ghala Pesa, which will enable farmers to use stored crops as collateral and access funds before making actual sales.

CBT’s Managing Director, Mr Godfrey Ng’urah, said the initiative would help farmers access working capital while waiting for auctions or buyers.

“These warehouses is sue warehouse receipts, which are regulated by the Warehouse Receipts Regula tory Board (WRRB). While waiting for the right market, farmers can access financ ing through us,” Mr Ng’urah said.

He added that the bank has also introduced Coop Pesa, a mobile-based plat form enabling farmers to transact from their handsets, easing payment processing and access to services.

In a bid to strengthen value chains in agriculture and trade, Mr Ng’urah noted that the bank has brought a new digital product to the Nanenane fair—CoopNet— which enables cooperative societies to process farmers’ payments through internet banking.

“For instance, in crops such as sesame and pigeon peas—and soon cashew— we have facilitated over 150bn/- in payments to farmers across Songwe, Songea, Mtwara and Lindi during the ongoing harvest seasons,” he explained.

Through this digital in tegration, cooperative leaders and accountants can now disburse payments directly from central accounts to individual cooperative ac counts, boosting transpar ency and efficiency.

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In addition to digital banking, the bank plans to launch a key agent banking service during the exhibition.

Mr Ng’urah said Coop Bank currently operates more than 30,000 agents across the country, many of them connected through co operative societies.

“Our services are ac cessible even beyond our branches. Through these agents, farmers and entre preneurs can open accounts, deposit, withdraw and make transactions conveniently,” he said.

He added that in col laboration with the Ministry of Agriculture, the bank has introduced tailor-made prod ucts for entrepreneurs and agribusiness actors.

“We recognise that the future of agriculture lies in building a better tomorrow through initiatives such as Building a Better Tomorrow (BBT), and we are seeing more graduates entering ag riculture as a career.”

Since its establishment, Coop Bank has recorded rapid growth, doubling its loan portfolio within a short period. As of the third quar ter of this year, the loan book stood at 32bn/-, up from 15bn/-, with over 70 per cent of the credit directed to the agriculture sector.

Deposits have also surged from 14bn/- to 52bn/ , while total assets increased from 43bn/- to 67bn/- within three months.

Mr Ng’urah further stat ed that the bank continues to provide a wide range of financial services including loans to youths, entrepre neurs, traders, salaried work ers and individuals under its personal loan schemes.